Which of the following statements is (are) true under the
law affecting corporations?
I. A corporation may indemnify directors against lawsuits
based on their good-faith actions for the corporation.
II. A corporation may indemnify officers against lawsuits based
on their good-faith actions for the corporation.
III. A corporation is allowed to purchase liability insurance for
its directors.

I only.
I and II only.
I and III only.
I, II, and III.

Correct - Your answer is correct.

Wrong - Your answer is wrong.

Detailed Answer

(d) A corporation may indemnify both its directors as
well as its officers against suits based on their duties for the corporation
if they acted in good faith and in the best interests of the
corporation. A corporation may also purchase insurance to cover
the liability for lawsuits lost based on actions of its directors and
also its officers.